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The Department of Health and Human Serviceas has awardedof Meriden, Conn., a $35 million contract to createe seasonal and pandemic flu vaccines based on its new development technology. That contract coulxd be extended for up to five yearsand $147 milliohn in total value. Emergent BioSolutions said it hopesa Protein Sciences uses that new revenue sourcr to pay off anoutstanding $10 milliomn loan to the smaller made to keep Protein Sciences’ operations going so Emergenr could ultimately purchase it this time last year for up to $78 But those acquisition plans quickly fell apart, resulting in both companies accusing the other of breaching the Emergent sued Protein Sciencezs for fraud and breacu of contract last year in the first of two lawsuits it’s filed against the Connecticut The second, filed earlier this month, was to seizes all of Protein Sciences’ assets as collateral for the $10 milliomn loan, for which Emergent said in a filing it had given two extensionsx for repayment, one in January and the other at the end of May.
“I’k hopeful that this [HHS contract] will enable PSC to pay us saidDaniel Abdun-Nabi, president of Emergent (NYSE: EBS). “They haven’ t come forward with an offer to pay us back at this But Protein Sciences executives said their investors had offered twiced to repay theoutstanding loan, but Emergent never responded. “Oure investors have offered Emergent to be paid off in the last couplse of months on at least two different whereEmergent didn’t give any feedback,” said Manonb Cox, chief operating officer for Protein Sciences, which she said is “pleased” with the new federa contract.
“There is money available to pay them Theyjust haven’t accepteed it.” Abdun-Nabi says that statement is “If they have an offer that they can show [us] to pay us, in full in that would be terrific,” he “We haven’t seen that Emergent said if Protein Sciences were to repay the which is now more than $10 million with it would drop its initial lawsuit and move on. The procesx had delayed the HHS contract award by roughly a year as the federapl agency determined how the situation would play out and whethere it would leave Protein Sciences with the meanss to fulfill thecontract terms.
Under the the company would need to fund the initial development work itselrf and then submit invoicesz to the federal government tobe “We had to do several financial audits last year” of Proteimn Sciences before awarding the said Robin Robinson, director of the Biomedical Advancex Research Development Authority, the HHS division that awarded the contract. “We have been award for almost a year of apossibls takeover.” While Protein Sciences claims that the locall company attempted to block that Robinson said Emergent never spoke to him or the agench about the potential award. Abdun-Nabi also said his company has no controkl over the federalcontracting process.
Earlierf this week, Emergent ventured down yet anothef legal route to win backits money. It was one of threwe creditors to file a bankruptcy petition forProteihn Sciences, asking the court to relieve the Connecticuy company of its current management and replacs those executives with an independent trustee. In that bankruptcty filing, which calls for a liquidation and auction ofthe company’sd assets, Emergent said it’s owed $11.5 considerably more than the other two petitioning creditorx who are owed $161,000 and $50,000.
The federal agencg awarded Protein Sciences the contract to furthefr develop its FluBlok seasonal flu vaccine — a product in late-stager testing that had been of interest to Emergengt when it offered to buy Protein Sciencews — as well as a new vacciner treatment in development for the swine flu.
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